Inheritance Tax Planning
Have you thought about what will happen to your estate when you die? You may believe it will be shared between your loved ones, but if you don’t plan, they could be hit by a huge tax bill.
The current threshold of total assets when someone dies is £325,000, after which their estate is liable to 40% inheritance tax. At Page Kirk Financial Services, we want you and your family to keep as much money as possible. We understand losing a loved one is stressful enough without having to think about finances too.
An estate may also be entitled to the Residential Nil Rate Band (RNRB), introduced on 6th April 2017, if:
- The individual owns a home, or a share of one, so that it is included in the estate
- The individual’s direct descendants, such as children or grandchildren, inherit the home, or a share of it
- The value of the estate is not more than £2m.
The maximum available amount of the RNRB will increase annually as below:
- £100,000 in 2017 to 2018
- £125,000 in 2018 to 2019
- £150,000 in 2019 to 2020
- £175,000 in 2020 to 2021
For later years, the maximum RNRB will increase in line with inflation (based on the Consumer Prices Index).
For estates valued at more than £2m, the RNRB will be gradually withdrawn or tapered away.
The RNRB only applies to the estate of a person who’s died. It doesn’t apply to gifts or other transfers made during a person’s lifetime. This includes gifts that become taxable because they have been made in the seven years preceding a donor’s death.
Further information can be found on the HMRC website.
We are able to offer a wide range of tax-efficient products to help mitigate inheritance tax, such as Trusts, Aim Investment Portfolios and Business Property Relief Schemes.
If these are of interest to you, please don’t hesitate to contact us for a free initial consultation.